An Improvement Philosophy

Monday; Sept 15, 2003

Kaizen

Welcome to

Over-manned Flight
Source : BW, December 9, 2002

Employees/Aircraft Air-India 664 Singapore airlines 341 Air France 277 Emirates 267 British Airway 227 Lufthansa 185 United Air lines 174 Japanese Airlines 146 Industry Average 162

Passenger/Employee 153 441 426 703 573 714 953 1589 986

An Improvement Philosophy

Understanding

Always

Good

Continual
Change

Improvement
For the better

School

Wisdom

Understanding
Implied Meaning
Harnessing the Godliness of Human being

Why Keep Moving?

Survival
You may be thinking that you are on a
right track, but if you keep on sitting there some one will over run you.

A Japanese saying

Cost Of Quality

Total cost of Quality

Internal + External Failure Appraisal cost

Prevention cost Time

Cost Of Quality
Profit Cost of Quality, 20-30 %

Operating Cost

Understanding
Kaizen is Journey from
Event
Cause

Result
Gross Enforcement
of change

Process
Micro

Inducement of change

Understanding
Kaizen is : Process improvement Observation Use of new Paradigm Short time Zero investment Human development & Empowerment Profit & Saving Plenty

Imperfection Is Inherent in Nature

The great evolutionist, Dr David Starr Jordan said ------

Try to overcome Imperfection and

If you succeed,

Other imperfections will come to the surface

Dont complain, ---

That is the nature of the world

Keep on striving and correcting Until you reach the state of absolute perfection.

Understanding
Kaizen is : Process improvement Observation Use of new Paradigm Short time Zero investment Human development & Empowerment Profit & Saving Plenty

Use of New Paradigms :

Change over from Batch production to
single piece production

Fish giving multitude of Eggs

One Egg at a time

Use of New Paradigms :

Shojinka (unification of labour)

Overlapping of responsibility

Use of New Paradigms :

Making your machine perfect

Team rather than

individuals are recognised

Understanding
Kaizen is : Process improvement Observation Use of new Paradigm Short time Zero investment Human development & Empowerment Profit & Saving Plenty

Kaizen Mind
It is a positive attitude through

Existing operation has always a lot

of room for improvement

Existing facilities & methods can

always be improved by effort makes big difference

The accumulated improvements

Kaizen Umbrella

Kaizen
TQM JIT QC Circle Suggestion system Automation

TPM 5S Quality Improvement Zero defect Small group activity

Division of Labour
Adam Smith, 1776

Henry Ford Prodn Guru

(Work was brought to worker in tiny repeatedly work; work was to install single part)

Alfred Sloan Mgmt Guru

(Manager can control from Hq by controlling Finance & Production number)

Major Kaizen Concepts

Kaizen and Management

Process Vs Result
Following the PDCA / SDCA cycle Putting Quality First Speak with Data The next process is the Customer

Kaizen Grid Japanese Way

Top Middle Supervisor Worker

Concern

Job Perception Elsewhere (Western)

Top Middle Supervisor Worker

Maintain Maintain Maintain Maintain

Concern

Worst Companies
Top Middle Supervisor Worker

Concern

Culture at Worst Companies

No Kaizen involvement

Change is forced by market

conditions

Directionless

Breakdown between Maintenance, Kaizen & Improvement

Top Middle Supervisor Worker

Improve

Kaizen

Maintenance
Concern

Type of Improvement
Small Kaizen increment

Improvement
Drastic Innovation increment

Ideal Pattern of Innovation

Improvement

Innovation

Innovation
Innovation

Time

Kaizen Vs Innovation
SN 1 2 3 4 Criteria Effect Pace Time frame Change Kaizen Long term Long lasting Un-dramatic Small steps Continuous Gradual Innovation Short term Dramatic Big steps Intermittent Abrupt

Kaizen Vs Innovation
SN 5 6 7 8 Criterion Involvement Approach Mode Spark Kaizen Everybody Group effort Systems approach Maintenance and improve Conventional know how Innovation Select few Rugged individual ideas and effort Scrap and rebuild Technological breakthrough

Kaizen Vs Innovation
SN Criterion Practical requirement Kaizen Little investment Great effort to maintain People Process Better result Slow growth economy Innovation Large investment Little effort to maintain Technology Results for profit Fast growth economy

Effort 10 orientation Evaluation 11 criteria 12 Advantages

Parkinsons Law

An organisation, once it has built its structure, begins its decline

Effect of Parkinsons Law

What actually should be

Improvement

Maintenance

What actually is

Time

Actual Pattern of Innovation

Decline Decline

Improvement

Time

Belief of Kaizen Strategist

Standards are tentative

Through continuous effort, one standard leads to another

Innovation + Kaizen
Continuous new standards

Improvement

Innovation

Innovation

Kaizen

Time

Major Kaizen Concepts

Kaizen and Management
Process Vs Result

Following the PDCA / SDCA cycle

Putting Quality First Speak with Data The next process is the Customer

Major Kaizen Concepts

Kaizen and Management
Process Vs Result

Following the PDCA / SDCA cycle

Putting Quality First Speak with Data The next process is the Customer

P D C A Cycle for Improvement

Plan

Act

Do

Check

S D C A Cycle for Maintainance

Standar dize

Act

Do

Check

KAIZEN

A P C D

KAIZEN

A P C D

A S C D

Maintenance

A S C D

Maintenance

PDCA/SDCA Cycle
IMPROVEMENT

A A P C D
STANDARDIZATION STANDARDIZATION

S D

KAIZEN

A P
KAIZEN

C D

Never Ending Improvement

Take new problem

Standardise

Solve

Major Kaizen Concepts

Kaizen and Management
Process Vs Result

Following the PDCA / SDCA cycle

Putting Quality First Speak with Data The next process is the Customer

Quality & Productivity

Definition of Kaizen

Putting Quality First

Quality

Quality Cost & Delivery

Two Sides of a Coin

Quality & Productivity

Kaizen
Tail

Head

Speak With Data

We dont know what we dont know? We cant do what we dont know? We wont know until we measure We dont know measure what we dont value We dont value what we dont measure.

What TQM (KAIZEN) Practitioners Do?

Work with hard data

and not with, repeat not with

Haunches and gut feelings

Kauro Ishikawas Advice

We must talk with facts and data when you see data doubt them when you use measuring instrument,

doubt it.
when you carry chemical analysis doubt it.

Reminder from Kauro Ishikawa

Type of data - False data

- Mistaken data - immeasurable data

Basic Philosophy of Quality Improvement

Whatever measured must be recorded Whatever recorded must be analysed

Whatever analysed must be acted

upon

Using Data
Skill used in getting information from data can make difference between

Success and failure

In God we believe, Everybody else should bring Data.
Florida Light & power?

One Excellent Source of Data

Customer Complaints Rich source for Kaizen - Facts about customer pains - Free of cost

Major Kaizen Concepts

Kaizen and Management
Process Vs Result

Following the PDCA / SDCA cycle

Putting Quality First Speak with Data The next process is the Customer

Customers Expectation

GEMBA
Management Support

Customers Satisfaction

House of Gemba Management

Profit Mgmt
Quality & Safety Mgmt

Cost Mgmt

Logistic (Delivery) Mgmt

Workers Information Equipment operation

Product & Material

STANDARDIZATION Good House Keeping ( 5 S) MUDA ELIMINATION

Team Work Morale Enhancement Self Discipline Visual Management QC Circle Suggestion

Standardization

Did it happen, because

We dont have a Standard ? Standards are not followed ??

Standards are not adequate ???

Seiri

Seiton

Seiso

Seiketsu

Shitsuke

Eliminating 3 M
MUDA
MURI

(Waste)

(Strain / difficult task)

MURA

(Irregularity, discrepancy)

MUDA
yet to deliver
creates no value.

= Waste

People waiting for an item that has not been delivered, Any human activity which absorbs resources but Movement of item/people from one place from other
without any purpose

Goods/services which dont meet the need of

customer

Mistakes which requires re-works, rectification Processing steps which are not needed

House of Gemba Management

Profit Mgmt
Quality & Safety Mgmt

Cost Mgmt

Logistic (Delivery) Mgmt

Workers Information Equipment operation

Product & Material

STANDARDIZATION Good House Keeping ( 5 S) MUDA ELIMINATION

Team Work Morale Enhancement Self Discipline Visual Management QC Circle Suggestion

Golden Rules of Gemba Management

In Problem, first Go to Gemba Check Gembutsu Take temporary measures Find Root cause Stanadardise to prevent reoccurance

Golden Rules of Gemba Management

Check Gembutsu Tool, Machine, fixture Return good Complaining customer

Golden Rules of Gemba Management

In Problem, first Go to Gemba Check Gembutsu Take temporary measures Find Root cause Stanadardise to prevent reoccurance

Golden Rules of Gemba Management

In Problem, first Go to Gemba Check Gembutsu Take temporary measures Find Root cause Stanadardise to prevent reoccurance

Golden Rules of Gemba Management

Find Root cause Ask WHY as many times? 5 W & 1 H

(why, where, when, what, who, how)

Why Why diagram

Excessive time spent On correspondence

Too Many Errors

Too Many Reviews

Typists Need More Training

Need Better Equipment

Standards Not Clear

Fear of Top Boss

Six Honest Serving Man

I keep six honest serving men (They taught me all I knew ); Their names are What and Why and When And How and Where and Who. I send them over land and sea, I send them east and west; But after they have worked for me, I give them all a rest.

from "The Elephant's Child" in Just So Stories

Rudyard Kipling, 1865 -1936

The Five Ws and The One H

Where 1. Where to do it? 2. Where is it done? 3. Where should it be done? 4. Where else can it be done? 5. Where else should it be done ? 6. Where are 3- MU s being done? When Why How 1. When to do it? 1. Why does he do it? 1. How to do it? 2. When is it done? 2. Why do it? 2. How is it done? 3. When should it be done? 3. Why do it there? 3. How should it be done? 4. What other time can it be 4. Why do it then? 4. Can this method be used in done? 5. Why do it that way? other areas? 5. What other time should it 6. Are there any 3-MUs in 5. Is there any other way to be done? the method? do it? 6. Are there any time 36. Are there any 3-MU s in MUs? the method? Who 1. Who does it? 2. Who is doing it? 3. Who should be doing it? 4. Who else can do it? 5. Who else should do it? 6. Who is doing 3-Mus? What 1. What to do? 2. What is being done? 3. What should be done? 4. What else can be done? 5. What else should be done? 6. What 3-MUs are being done?

2 Conscious Incompetence

3 Conscious Competence

Unconscious Incompetence 1

Unconscious Competence 4

Improvement Ideas
Japan: 24 improvement ideas in writing per employee each year
U.S. : Average less than one United Kingdom: one idea every six years India: Average 2-3 ideas per employee per annum (Nestle)

Arch Enemy of Kaizen

Kaizens Stress on People

If you want one year of prosperity, grow seeds,

If you want ten years of prosperity, grow trees,

If you want one hundred years of prosperity, grow people"

Chinese proverb

Kaizen Websites

www.gemba.com www.kaizen.org www.papakaizen.com